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Microsoft tries to revive mobile

By Maggie Shiels
Technology reporter, BBC News, Silicon Valley

phone with windows mobile

Microsoft is hoping its new mobile phone software, to be launched in October, will revive its fortunes in the market for smart phones.

Analysts estimate Microsoft’s Windows Mobile software trails fourth in the market with a 9% share while rival Symbian dominates with about 50%.

"Our new class of phones sets us up for the future," Microsoft’s Stephanie Ferguson told BBC News.

Microsoft would not say how many new phones will feature Windows Mobile 6.5.

"We do expect to have a lot of momentum using the Windows brand more prominently," said Ms Ferguson, general manger in the Windows mobile group.

"Microsoft’s attempts in the mobile arena have been lame, lame, lame, to say the least"

Paul Rubens, Internetnews.com

"It is a brand that customers know and trust and we haven’t quite used it as well as we should. Our research with customers shows when we put Windows phones out there they are highly interested."

Among the mobile operators signing on are AT&T and Verizon in the US, Orange and T-Mobile in Europe, Telecom Italia Mobile in Latin America and NTT DoCoMo Inc and SK Telecom in Asia Pacific.

Handset makers producing phones powered by the software include LG Electronics, Samsung, Sony Ericsson, HTC, Toshiba Corporation and Acer.

‘Lame, lame, lame’

But despite the confident talk, analysts and industry watchers note that Microsoft is not where it would wish to be in the smart phone market.

Technology research firm Gartner said smart phones are the fastest growing segment of the mobile phone market topping 40 million sales and representing a 27% increase from the same period a year ago.

Boxes of Apple iPhones

Analyst company Canalys reported that shipments of devices powered by Windows Mobile fell to 9% of global smart phone shipments, down from the company’s 14.3% share in the same period in 2008 and well behind Nokia’s leading share of nearly 45%.

RIM’s Blackberry commanded 20.9%. Apple’s iPhone might demand the majority of headlines but has a 13.7% market share.

"Despite its domination of desktop and server room operating system sales, Microsoft’s attempts in the mobile arena have been lame, lame, lame, to say the least," said Paul Rubens of Internetnews.com.

Ned Smith of DigitalMediaBuzz.com defended Windows Mobile as a worthwhile product.

"What gets lost in the hooting and hollering that often overpowers the smart phone conversation, is that Windows Mobile devices are plenty powerful, with ability to run Windows Mobile Office productivity apps such as Word, Excel and PowerPoint. There’s also a user base well north of 30 million," noted Mr Smith.


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Curbs urged for behavioural ads

By Maggie Shiels
Technology reporter, BBC News, Silicon Valley

Madonna

A powerful alliance of privacy and consumer groups have likened behavioural advertising to "being followed by an invisible stalker."

They now want Congress to curtail the practice of tracking consumers online to tailor ads more effectively.

Yahoo, Microsoft and Google all use targeted online advertisements.

"It’s not just about the right ad at the right time, it’s about creating a profile about you," said the Centre for Digital Democracy’s Jeffrey Chester.

"These companies want to know about your likes and dislikes, if you are Hispanic, do you vote, are you on a low income or a high income, where do you travel, what do you like to read.

"It’s about a system that not only targets and influences the products you buy but is also a powerful and invisible system of digital persuasion designed to change attitudes and awareness," Mr Chester told BBC News.

The coalition of ten organisations is expected to call on the government to allow consumers to "opt in" rather than "opt out" of such advertising models.

It will also seek to ensure no data is collected around financial or health matters. The key, many say, is transparency.

"An individual’s data belongs to them and before these companies track you all over the internet, they need to be transparent about what they are doing and how they intend to use that information," said John Simpson, consumer advocate with the Consumer Watchdog.

Tracking

The call to put limits on such advertising comes as the House Commerce Committee is drafting legislation to improve consumer privacy online.

Congress held hearings on the issue in June. Testimony was provided by Facebook, Google and Yahoo.

Google search with a close-up of an eye

While Yahoo and Microsoft have used behavioural advertising for some time, Google waited until March of this year to employ what is also referred to as "internet-based advertising".

In general the system uses a cookie – a small piece of text that lives inside a web browser – to track users as they visit different websites.

This information is then used to target online advertising campaigns at consumers because they tend to result in higher online ad return rates.

That means a user who is a keen traveller and visits lots of travel sites would be shown more travel-related ads.

"Golden egg"

A coalition of America’s marketing industry trade bodies, representing about 5,000 companies, published a set of seven principles in July to address concerns around the issue.

"A broad ‘opt in’ would be a sea change and it would be a recipe for disaster"

Mike Zaneis,
Interactive Advertising Bureau

"The vast majority of what happens online is truly anonymous and all marketers and publishers are trying to do is deliver an ad that has some relevancy to the person viewing it at a certain time," Mike Zaneis, vice president of public policy for the Interactive Advertising Bureau told BBC News.

"The beautiful thing is they don’t have to click on that advert, or pay attention to it or do anything."

While Mr Zaneis agreed more has to be done to educate consumers about the issue, he also warned that pushing for a blanket "opt in" measure would be disastrous.

"A broad ‘opt in’ would be a sea change and it would be a recipe for disaster. It would kill the goose laying the golden egg.

"The goose is the internet and the golden egg is the free content and services that consumers enjoy and that would be diminished," said Mr Zaneis.

Other organisations included in this broad alliance include the Consumers Union, Electronic Frontier Foundation, Privacy Lives, Privacy Rights Clearinghouse, U.S. Public Interest Research Group, World Privacy Forum, Privacy Times and the Consumer Federation of America.


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Microsoft backs long life for IE6

By Maggie Shiels
Technology reporter, BBC News, Silicon Valley

ie6nomore

Microsoft has underlined support for its Internet Explorer 6 web browser, despite acknowledging its flaws.

The software giant said it would support IE6 until 2014 – fours years beyond the original deadline.

Critics – some of which have started an online campaign – want the eight-year-old browser mothballed because they claim it slows the online experience.

"Friends do not let friends use IE6," said Amy Bardzukas, Microsoft’s general manager for Internet Explorer.

"If you are in my social set and I have been to your house for dinner, you are not using IE6," she said. "But it is much more complicated when you move into a business setting."

"It’s hard to be cavalier in this economy and say ‘oh it’s been around for so long they need to upgrade,’" Ms Bardzukas told journalists in San Francisco..

Web monitoring firms estimate that 15-20% of people still use IE6 to browse the web.

Enough is enough

Among those speaking out against IE6 is a group of more than 70 developers who have banded together to form a project called ie6nomore.

"Enough is enough," they implore on their website.

Justin.tv

"Microsoft Internet Explorer 6 was released in late 2001. For its time, it was a decent browser, but in 2009, it is still in use by a significant portion of the web population, and its time is now up."

"Web developers hate IE6," said Evan Solomon of Justin.tv, one of the backers of the campaign.

"We are passionate because we run a website and something like 10% of our users use IE6, but our web designers and developers have to spend a lot of time debugging for the platform.

"The other issue for us is that we have launched an API to let people build applications and while our goal is to make it as easy as possible for people to do this, IE6 is a barrier," Mr Solomon told BBC News.

In a blog post in response to such campaigns, the software giant said that while this issue is a simple one for technology enthusiasts, "the choice to upgrade software on a PC belongs to the person responsible for the PC".

"Many PCs don’t belong to individual enthusiasts, but to organisations. The backdrop might be a factory floor or hospital ward or school lab or government organisation, each with its own business applications," wrote Dean Hachamovitch, general manager for the browser group.

"Dropping support for IE6 is not an option because we committed to supporting the IE included with Windows for the lifespan of the product."

"Best experience"

Despite the renewed commitment, Microsoft said it would prefer people to move to IE8, which it says comes with improved functionality and security.

IE8 Web Slice

"We want people to have the best experience they can have on Microsoft software," said Ms Bardzukas.

"If people get frustrated with that experience and they say ‘Microsoft stinks and IE stinks’ and they’re basing that on technology that was designed nearly a decade ago, well yeah that is concerning."

Industry watchers believe, that despite Microsoft’s backing, IE6′s days are numbered.

"IE6 will just die away anyway," said Harry McCracken, editor and founder of tech news site Technologizer.

"I only have around 7% of people who visit my site using IE6 and it will just dwindle away no matter what anyone does," he said.

Threat

Microsoft’s touting of IE8 comes as browser competition intensifies.

The most immediate threat to Microsoft’s 68% market share comes in the shape of Mozilla’s Firefox – used by 22% of browsers.

Firefox 1billion

"The competition Microsoft has to worry about right now is Firefox. Not just from a market share perspective but from an innovation perspective because their plug-ins work really well," Ronald Gruia, a principal analyst with Gartner told BBC News.

"In the future they have to look out for Google with its Chrome browser," he said. "The main concern there for Microsoft is the rise in cloud computing and software as a service. Google is becoming very effective at delivering applications in the cloud and therefore poses a huge threat to Microsoft."

"This is the best time to be a browser user because there is so much choice," agreed Mr McCracken.

"Almost anyone on the planet who uses the web uses Google and that gives them a powerful way to market Chrome. They started with the browser and now they have the Chrome operating system as an even more direct attack on Microsoft’s core business.

"My guess is Mozilla is what it is and that battle is, in some way, over. Chrome doesn’t have a huge market share at the moment, but if I was Microsoft I would be worried about Google making Chrome really big." said Mr McCracken.

Such issues did not seem to trouble Ms Bardzukas.

"IE is still the most broadly used browser in the world. We are focused and we are here to play."

"Clearly Google is a very strong technology company with a number of offerings across the internet space but beyond that, I don’t have a comment on them as a browser vendor in particular," stated Ms Bardzukas.


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Virtual front line

By Maggie Shiels
Technology reporter, BBC News, Silicon Valley

Austin Heap at the Iran Rally in San Francisco July 2009

At a recent demonstration in San Francisco, thousands of supporters chanted for freedom and democracy for Iran following the contested presidential election held in June.

More than 40 days have passed since the election result declared for Mahmoud Ahmadinejad and not opposition leader Mir Hussein Mousavi, whom many believed had really won.

People have died and gone to jail for their part in protesting the outcome and trying to tell the world about their plight.

As Iranians rushed to the internet and social networking sites like YouTube, Facebook and Twitter to vent their anger and organise rallies and demonstrations, the government countered by blocking them.

At the forefront in helping them has been a concerned tech community that has battled to find ways around Iranian government filters and blocks.

Among them is a 25-year-old, self-confessed geek who found himself on stage at the San Francisco rally explaining his role in a story that has variously gripped the world.

For many, Austin Heap has become one of a band of accidental heroes fighting on the virtual front lines to help Iranians speak out.

"A simple thing"

Mr Austin’s role started out as a fairly simple one: compile a list of as many proxy servers for people so that they could get around the Iranian government’s efforts to silence them.

Mr Heap also put out a set of simple instructions on how to set up these proxies, which act as an intermediary between a computer user and the internet to bypass censorship.

Message in Farsi saying access blocked, 25 May, 2009

In no time he became the main conduit of this list and was contacted by people all over the globe offering new proxy addresses.

Traffic to his site grew from a few dozen users a day to more than 100,000 in 24 hours.

"To me it seemed like such a simple thing to do," said Mr Heap from his downtown loft in the heart of San Francisco’s tech community.

"I have the technical skills and resources and I knew I could call on the world’s open source community for help to set up proxies. It seemed like it was something that wouldn’t take up much of my time but that could make a big difference for a lot of people.

"These are people who are just like me. Young, connected and Web 2.0 nerds. I couldn’t let them down," Mr Heap told BBC News.

Since then, the effort to keep Iran online has taken up all his free time and even eaten into his work time.

"I missed three weeks of work. No vacation. No Paris. I now work on this about 90 hours a week, from when I get up until I go to bed some days.

" It’s all about keeping these people online in one form or another. Giving them the power to be heard."

"A better place"

Today Mr Heap is not alone.

His main cyber activist cohort is 24 year old Daniel Colascione from Buffalo, New York, whom he met online and through the micro-blogging service Twitter.

"Daniel is phenomenal at understanding all those ones and zeros and bits and bytes like no one I know," said Mr Heap.

Protest in Iran

"As a matter of principal I had to do something to help. It was critically important for me, " explained Mr Colascione.

"We want to make the world a better place and make sure the people who died there didn’t die in vain."

Together the two 20-year-old somethings developed some anti-filtering software called Haystack. In lofty terms, Mr Heap said it "is designed to honestly uphold human rights via technology."

Less prosaically it is meant to help people inside Iran circumvent their own government’s filtering system.

"That means whenever someone inside the country gets a page saying ‘access denied’ when they try to use Twitter or Facebook, if they run Haystack Twitter is back, Facebook is back.

" It’s completely secure for the user so the government can’t snoop on them. We use many anonymising steps so that identities are masked and it is as safe as possible so people have a safe way to communicate with the world," explained Mr Heap.

National firewall

So just how effective have Mr Heap and others been in their efforts to get around the so called Iranian national firewall.

Arbor Networks monitors more than 70% of the world’s internet service providers, or ISP’s, along with many large businesses.

graph from Arbor networks

It has charted the flow of internet traffic in and out of Iran since the election and found that traffic is down an average of 30-40%.

"Throughout this period we have seen some severe filtering as the government consolidates its physical and virtual hold over its people," Arbor Network’s chief scientist Craig Labovitz told BBC News.

"It has been interesting watching those traffic manipulations and from our perspective it has looked as though Iran has struggled with the technology and the capacity to do the filtering. Folks are still finding their way around the filters."

Other software products similar to Haystack include FreeGate, which was devised to work around filtering efforts in China.

"Good versus evil"

Back in early June, before the election had taken place Mr Heap spent his spare time playing the online game World of Warcraft. He has admitted to knowing little about Iranian politics. Now all that has changed.

"I am a huge election protection advocate and free speech advocate. My friends joke that 45 days ago I knew nothing about the election. I just wasn’t paying attention but now all I see is censorship and violence and that disturbs me.

Austin Heap

"Today I still don’t know that much but I love programming and I know I can make a difference. I know it sounds hippy, but that is what techies do.

"Technology is about collaboration. Everything builds on everything else. And that is the beautiful part is that we are all in this together," said Mr Heap.

Mr Colascione agreed.

"There is a quote I am fond of and will mangle but "never doubt that a small group of common people can change the world."

"This project gives me a sense of significance. This is more important than anything I have ever done."

While both men say their primary focus is on Iran they hope the software they have devised can be used in other countries. They have their sights set on China next.

"It’s too cool to have an opportunity to help people," said Mr Heap.

"I love the power of the internet because we can chill behind our computer screen and not only do the right thing, but give people the uncensored internet back and let their voice be heard.

"We also get to take on a nutty government and I like that. I see this as a good versus evil issue," said Mr Heap.


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Google and Apple not off the hook

By Maggie Shiels
Technology reporter, BBC News, Silicon Valley

Google sign

The resignation of Google’s Eric Schmidt as a director of Apple’s board has failed to halt a government inquiry into possible antitrust violations.

Mr Schmidt stepped down because the search giant’s business increasingly competes with Apple’s.

The Google CEO recused himself when Apple’s board discussed the iPhone.

In a statement the Federal Trades Commission said "we will continue to investigate remaining interlocking directorates between the companies".

"We commend them for recognising that sharing directors raises competitive issues, as Google and Apple increasingly compete with each other," said the FTC’s Bureau of Competition director Richard Feinstein.

"Clubby"

Former Genentech CEO Arthur Levinson still serves on both boards.

The Consumer Watchdog has called for him to step down from either Google or Apple to avoid antitrust violations.

"It took Eric Schmidt far too long to realise that the two roles are incompatible; that’s not surprising considering the clubby atmosphere of Silicon Valley," said the non-profit’s consumer advocate John Simpson.

"Nonetheless, we’re glad Schmidt finally did the right thing; we call on Levinson to act responsibly and choose one company or the other."

Eric Schmidt

News that the FTC will continue with its inquiry has highlighted a shift in how regulators are prepared to act under a new administration said Jo-Ellen Pozner, assistant professor of organisational behaviour at Berkeley’s Haas School of Business.

"Clearly the tone has changed in Washington and that makes it more difficult for a marriage like this of Google and Apple at the board level to go unnoticed and not scrutinised.

"When there is a visible conflict or issue like this, regulators will pay more attention to that sector. If these firms are smart they will regulate themselves and figure out which relationships they need to keep, or rectify or fix," Ms Pozner told BBC News.

The areas of competition between the two companies include mobile telephone technology and computer operating systems.

Aside from the issue of competition, Ms Pozner noted there were some practical reasons for Mr Schmidt’s much needed departure.

"It would have been increasingly difficult to attend to board matters. Apple has a small board so there is not that much room for someone constantly recusing themselves from so many areas of discussion if you want an active board."

"Enemy"

Industry watchers said Mr Schmidt’s resignation will allow Google to take the gloves off and compete more openly with Apple. The danger warned one top blog is that it could also turn the company into public enemy number one.

"If nothing else it does mark a shift in where power resides in Silicon Valley and who is the perceived enemy," said TechCrunch co-editor Erick Schonfeld.

Steve Jobs

"For a long time you could say that Mr Schmidt on the Apple board was because both Google and Apple looked at Microsoft as the enemy, the main competition for different reasons.

"As computing shifts to these web based apps it’s almost as if Google is taking the place as the most feared company in technology. Certainly for a lot of companies it has already taken that spot," Mr Schonfeld told the BBC.

"The bigger shift that is now happening is this shift to more web centric computing and Google wants to be the central player there.

"They want to be the operating system of that world and that world doesn’t care if you are using a MacBook, an iPhone, BlackBerry or Android. All this stuff happens in the cloud," said Mr Schonfeld.

"It’s not Goggle versus Apple. It’s really Google versus the old model of computing which increasingly means Apple has more in common with Microsoft."

"Fiasco"

TechCrunch is not the only blog to warn of trouble ahead.

The highly respected blogger Om Malik of Gigaom.com has said that when it comes to the issue of smartphones the "battle between Google and Apple is going to get very ugly – as it should."

Apps store

He highlighted the recent decision by the iPhone’s App store to reject an application called Google Voice. That is now being investigated by the Federal Communications Commission.

"As the Google Voice apps fiasco has taken on a life of its own, I have been busy pointing out that this battle was between Apple and Google."

The timing of Mr Schmidt’s resignation has also resulted in comment coming days after the FCC announced its inquiry.

"The way I see it, he (Mr Schmidt) got shown the door by (Apple CEO) Jobs. Back in May, Schmidt said he had no plans to resign from Apple’s board," noted Mr Malik

For Harry McCracken, the editor and founder of Technologizer there remains a lot of unanswered questions.

"I would love to know the back story here because it was late on Friday that the FCC news came out about it investigating the rejection of Google Voice and here we are a few days later and Mr Schmidt has resigned from Apple.

"From the outside it looks like there is a connection, but who knows" said Mr McCracken.


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Push for ‘instant-on’ web search

By Maggie Shiels
Technology reporter, BBC News, Silicon Valley

Splashtop logo

A company that provides "instant-on" computing will bring "instant search" to the PC for the first time.

Splashtop, made by DeviceVM, already lets consumers access email, chat with friends, share photos or surf the web seconds after turning on their PC.

The deal involves three search leaders including Yahoo in the US and Japan, Baidu in China and Yandex in Russia.

DeviceVM’s Dave Bottoms said the deals make sense because web searching is fundamental to computer users.

"Search is the tip of the iceberg in being able to offer a lot of different web services, but when you think about where people spend their time online, it’s in search," Mr Bottoms, senior director of product management, told BBC News.

"I think this is the next new start experience frontier we are witnessing at the device level."

A web analytics firm, Comscore, found that in June alone Americans conducted more than 14 billion core searches, up from 10.8 billion in 2008.

"A lot of people use search as a basic navigation tool," said DeviceVM’s marketing director Sergey Krupenin.

"Instead of typing in Facebook.com in the address bar, users are typing it into the search box."

‘Accessible’

Depending on what part of the world users are in, as soon as they switch on their computer, they will be greeted by a front page that offers a free Yahoo branded search box or one that says Yandex or Baidu.

Yahoo front page

"Web search has emerged as the dominant and universal navigation tool…and providing instant search will further expand our search leadership in China, the largest and fastest growing internet search market in the world," said Haoyu Shen, vice president of operations for Baidu.

"The search distribution landscape is changing, and instant search is one of the ways Yahoo provides our users with a convenient and highly accessible Yahoo search experience," said Tim Mayer, vice president of North America search and social experiences for Yahoo.

In America analysts are not so sure this "instant-search" feature will make a big difference in driving more users to Yahoo, which has 20% of the US market versus Google’s 65% share.

"I don’t think these deals have a dramatic impact on market share," said Greg Sterling of search news site SearchEngineLand.

"People’s habits are fairly well established now when they go online. However some people will undoubtedly use Yahoo for their search because they are lazy and it’s right in front of them," said Mr Sterling.

"That might mean Yahoo will get an incremental bump, but it won’t be significant."

‘Instant internet revolution’

Splashtop comes pre-installed on computers. At the moment it is on over 10 million PCs across 200 models made by Asus, HP, Lenovo, Sony, Acer and LG.

Mr Bottoms said the company estimated that by the end of this year, Splashtop -and the "instant internet revolution" that it heralds – will be on 40 million devices.

By the end of 2010, he believes, that number will be up to 100 million computers.

Asus netbooks

DeviceVM said the growing popularity of netbooks is key to this success and that this new instant search feature plays nicely into how people use these low-cost mini laptops.

"Users generally use netbooks on the go for chunks of a half an hour or so compared to notebooks or laptops where they will spend around three hours at home or in an office.

"With the emergence of netbooks, we are definitely seeing a lot of consumer demand for always being connected, always on and being able, at the press of a button, to get searching on the web quickly," explained Mr Bottoms.

A report by DisplaySearch said that demand for netbooks has been hot and looks to get hotter.

They are projected to grab a 20% share of the worldwide market for this year with consumers expected to buy almost 33 million netbooks – a doubling of last year’s 16 million.

"The culture of ‘on-the-go’ means that speed is important to these users," said SearchEngineLand’s Mr Sterling.

"I think that will be a benefit to the netbook experience and this is where that quick search box will have its appeal."

Windows 7

Splashtop and other "instant-on" offerings from other companies bypasses Microsoft Windows, the dominant operating system on PCs.

But software giant Microsoft has said Windows 7 promises to be a leaner, lighter propositsion that can compete in this space.

Windows 7 at Computex, AFP

The company has just released Windows 7 into the hands of computer makers in a process known as "release to manufacturers". This is the last big step before the product reaches users in late October.

Microsoft claims that Windows 7 test results showed PCs have gone from a "cold boot" – from switched completely off – to a ready desktop at speeds comparable to the instant-on environments.

But DeviceVM’s Mr Krupenin said that still does not solve the basic problem of speed.

"It is not about how fast an operating system is but how much is loaded onto it. Six months after people have bought their computer, it works at least two times slower because of all the applications that have been added on.

"Splashtop is an optimised environment around the browser and you are not installing anything there," he explained.

The company said it expects to see their ‘instant-search’ page on devices from September onwards.</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Yahoo’s front page makeover

By Maggie Shiels
Technology reporter, BBC News, Silicon Valley

Yahoo front page

Yahoo has unveiled sweeping changes to its front page aimed at shoring up its position as the main portal to the web.

Consumers in the US are the first to benefit from a new, customisable format which lets them link to third parties like Google and Twitter.

The new style will be introduced to parts of Europe and India later this week and Asia later in the year.

"We want to be at the centre of people’s lives online," said Yahoo’s consumer experiences head Tapan Bhat.

"There is a destination for everything you are about in just a click or two. Now we are looking at Yahoo holistically, all centred around the user," Mr Bhat told reporters in a conference call.

The key is personalisation and the biggest change involves a bar on the left hand side of the page, called My Favorites. Here, users can customise links to Yahoo and other services they use the most from news to social networks to email to movies.

While there are over 60 of these applications at the moment, consumers can add their own by typing in web addresses.

There are also plans to allow other software developers to design their own, more sophisticated applications that people can add.

"The new homepage is designed to make Yahoo the web’s number one destination portal by once again giving people one place to access everything," said Ben Parr, associate editor of social media blog Mashable.com.

‘Gateway to the web’

Yahoo has described the overhaul as the most "radical" and "fundamental" make-over of the site since it began more than a decade ago.

Yahoo front page

Changes to its front page were announced back in October 2007 and the company began testing with users around a year ago.

At its annual shareholder meeting last month, Yahoo’s chief executive officer Carol Bartz said the redesign was on target for completion by the autumn.

Yahoo’s front page is seen as vital to the company’s future and is regarded as prime real estate because it serves as an entry point for users, and as a result commands premium advertisement prices.

"Yahoo has been losing ground as a gateway to the web with individual services ranging from Google to Facebook to Twitter," said Business Week’s Rob Hof.

"So a home page that can connect them in one fell swoop to those services is its only hope to maintain its status as a key starting point on the internet – and one of the few places online where advertisers can reach a TV-sized audience."

An estimated 570 million people visit Yahoo every month.

‘Renaissance’

The launch of the new home page comes as speculation and rumour mount that Yahoo is near to finalising a deal with Microsoft over a search and advertising partnership.

The company is also facing increasing competition from the software giant following the release of its Bing internet search engine last month.

Bing screenshot (Microsoft)

There is little doubt that Yahoo is hoping this overhaul will revitalise both the company itself and the way it is viewed.

"It marks the beginning of a renaissance of Yahoo, a renaissance where every pixel matters," said Yahoo’s Mr Bhat.

While it is too early to tell how successful the changes will be, industry watchers say they are impressed.

"Time will tell if it is a success, but it is certainly a good and even innovative effort, in much the same spirit as Microsoft has had with its new Bing search offering," said Kara Swisher from AllThingsD.

"And while some might complain it is not ‘cutting edge’ enough, it seems just the right amount of re-jiggering and open feel for the mass of users it serves."

Users who want to take advantage of the new home page will have to opt-in and click on a link to select the new design.</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Apps ‘to be as big as internet’

By Maggie Shiels
Technology reporter, BBC News, Silicon Valley

App store

The market for mobile applications, or apps, will become "as big as the internet", peaking at 10 million apps in 2020, a leading storefront believes.

However, GetJar say, the developer community will decline drastically as each developer makes less money.

According to the Symbian Foundation, newly in the developer market, apps will become more personal and practical as their numbers grow.

The comments were made at the MobileBeat conference in San Francisco.

"Apps will be as big if not bigger than the internet," according to Ilja Laurs, chief executive of GetJar, a leading independent application store.

"They will peak at around 100,000 by the end of the year. That will be a tipping point and after that there will be a gradual fall in the rate of development.

"The full blossom will come in ten years and mobile apps will become as popular as websites are today with consumers," Mr Laurs told BBC News.

‘Economics’

While developers rush headlong to create applications for this burgeoning marketplace, Mr Laurs warned that many are simply doomed to fail.

"The reality is that this space is only so big and only able to support so many people. Unfortunately the overhype that goes with [Apple's] App Store is what has driven so many to rush to develop for the market. It is fashionable to do apps and every media outlet tells you apps are cool.

guys on cellphones

"But the economics are a different story. The ratio of those developers who will fail is about 90%; they will simply not make a return on their investment or make a good enough living at this," said Mr Laurs.

He said that will result in developers taking their talent elsewhere and also slow down the rate of growth in applications.

GetJar acts as an application intermediary, distributing apps and helping its community of 350,000 developers make money from their work.

‘Hit-driven environment’

To date, Apple runs the most popular application store with over 65,000 applications. Last week it notched up another milestone with 1.5 billion downloads.

Its success was a shock both to Apple and the industry. However, every smartphone company is trying to replicate it, from BlackBerry makers Research in Motion to the world’s biggest mobile phone business, Nokia.

Many at the MobileBeat conference in San Francisco felt that the popularity of Apple’s App store is also its Achilles heel because it caters to the "one hit wonder" model.

It is something social gaming company Playfish is well aware of with its iPhone app, "Who Has the Biggest Brain".

"It has been played on the web by 15 million people and when it launched on the iPhone it went to the top of the iTunes chart. But it quickly fell away and I think that’s an experience many people are going through, no matter the quality or originality of the content," Playfish co-founder Sebastien de Halleux told the BBC.

"The type of application you will see will help enrich your life…which is really what mobile applications are all about"

Lee Williams
Symbian Foundation

"You are competing for the top slot in a catalogue and you cannot, no matter who you are, hold onto that slot for an indefinite period of time. Many developers are realising that its hard to reach a sustainable business in a catalogue environment because it’s a hit-driven environment."

Mr de Halleux said heated conversations are going on within the industry to solve this problem. He also said he believed Apple wanted to find a way to help developers make money making apps that consumers want to use and pay for.

Meanwhile Lee Williams, executive director of the Symbian Foundation, said he was not sure the consumer or the industry needed any more application stores.

"The App Store is flawed – right now [it] is just a bucket of apps. You need to get beyond that bucket and give the consumer the opportunity to wander down a really relevant aisle of content and applications that they can get access to.

"When this problem is solved, the type of application you will see will be about more than an iBeer drinking app or a candle that flickers in different colours.

"The type of application you will see will help enrich your life in some way. It will let you do your image sharing, your social networking and establish presence with your friends, colleagues and family in completely new ways – which is really what mobile applications are all about," said Mr Williams.

Fad

At MobileBeat, organised by the blog VentureBeat, the issue of application stores seemed to dominate with conversations and panels on marketing techniques, turning apps into a real business and looking beyond apps.

The Biggest Brain by Playfish

But Google’s engineering vice president Vic Gundotra told the conference that the application store trend is just a fad and that the focus will shift to powerful browsers as the main mechanism for delivering services.

"Many, many applications can be delivered through the browser and what that does for our costs is stunning.

"We believe the web has won and over the next several years, the browser, for economic reasons almost, will become the platform that matters and certainly that’s where Google is investing," Mr Gundotra told the conference.

But referring to technical problems at the conference, MobileBeat organiser Matt Marshall told BBC News that scenario could be some time away.

"You saw at this conference that the web went down once or twice and that shows you that even the main web has problems so what about mobile

"When you talk about mobile browsers, that is the biggest change in the last year. You have networks like AT&T, Sprint and Verizon all building out to the fourth generation and that’s going to allow much more power in delivering those web browsers pages on your mobile phone. But it’s not here yet," said Mr Marshall.</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Twitter calls lawyer over hacking

By Maggie Shiels
Technology reporter, BBC News, Silicon Valley

Twitter co-founder Biz Stone

The microblogging service Twitter is taking legal advice after hundreds of documents were hacked into and published by a number of blogs.

TechCrunch has made public some of the 310 bits of material it was sent.

It posted information about Twitter’s financial projections and products.

"We are in touch with our legal counsel about what this theft means for Twitter, the hacker and anyone who accepts…or publishes these stolen documents, " said Twitter’s Biz Stone.

In a blog posting he wrote that "About a month ago, an administrative employee here at Twitter was targeted and her personal email account was hacked.

"From the personal account, we believe the hacker was able to gain information which allowed access to this employee’s Google Apps account which contained Docs, Calendars and other Google Apps Twitter relies on for sharing notes, spreadsheets, ideas, financial details and more within the company."

Mr Stone, Twitter’s co-founder, went on to stress that "the attack had nothing to do with any vulnerability in Google Apps".

He said this was more to do with "Twitter being in enough of a spotlight that folks who work here can be a target".

In his blog post, Mr Stone underlined the need for increased online security within the company and for staff to ensure their passwords are robust.

It is believed a French hacker who goes by the moniker "Hacker Croll" illegally accessed the files online by guessing staff members’ passwords.

"News value"

A number of technology blogs were offered the documents for publication in what is now being dubbed "Twittergate" in some online forums.

Screenshot of Twitter website

TechCrunch, one of the most respected blogs in Silicon Valley, has set off a firestorm of criticism and debate over its decision to post some of the material.

It started things off with what it called a "softball" and published details about a reality TV show involving Twitter. Details of such a programme were made public in May.

That was followed by documents relating to an internal Twitter financial forecast that the company said is no longer accurate.

"There is clearly an ethical line here that we don’t want to cross, and the vast majority of these documents aren’t going to be published, at least by us.

"But a few of the documents have so much news value that we think it’s appropriate to publish them," wrote TechCrunch Editor and founder Michael Arrington

Mr Arrington noted the site received a deluge of comments on the issue and said "many users say this is "stolen" information and therefore shouldn’t be published. We disagree.

"We publish confidential information almost every day on TechCrunch. This is stuff that is also "stolen," usually leaked by an employee or someone else close to the company."

The TechCrunch founder cited examples of stories it has covered in the past that involved information it had acquired and also those covered by newspapers like the Wall Street Journal that had done a similar thing.

Mr Arrington said that he has also consulted lawyers about the laws that cover trade secrets and the receipt of stolen goods.

"Embarrassing"

Many in the technology industry said this latest episode points to the potent reminder of how much information is stored in the cloud and the vulnerability or otherwise of that data.

Twitter messages

The hacker has claimed to have wanted to teach people to be more careful and in a message to the French blog Korben, wrote that his attack could make internet users "conscious that no one is protected on the net."

"The security breach exploited "an easy-to-guess password and recovery question, which is one of the simplest ways to make a username and password combination really insecure," said Phil Wainewright of ZDNet.com

"Unfortunately, users won’t wise up until the cloud providers force them to."

In a study last year the security firm Sophos found that 40% of internet users use the same password for every website they access.

The affair has put Google on the defensive because the information was stored in Google Apps, an online package of productivity software that includes email, spreadsheets and calendars.

The company issued a blog post. While it highlighted the need for strong security, it said it could not discuss individual uses or customers.

Twitter’s Mr Stone tried to play down the importance of the information being touted around the web.

"Obviously, these docs are not polished or ready for prime time and they’re certainly not revealing some big, secret plan for taking over the world.

"This is "akin to having your underwear drawer rifled: Embarrassing, but no one’s really going to be surprised about what’s in there." That is an apt apology," Mr Stone said.

At the social media blog Mashable, Adam Ostrow agreed.

"It’s another embarrassing moment in Twitter’s torrid growth, but nothing that’s likely to bring the house down."</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Cyber crooks get business savvy

By Maggie Shiels
Technology reporter, BBC News, Silicon Valley

front pages on cyber security

Cyber crooks are increasingly operating like successful businesses, deploying the same tools legitimate companies use to boost their profits.

Networking giant Cisco said online criminals were increasingly using proven business practices.

In its mid-year security report, Cisco said this new approach puts the bad guys way ahead.

"When your enemy is financially motivated you have to be on alert," said Cisco fellow Patrick Peterson.

"Capitalism is a powerful force and these criminal types are collaborating with one another and sharing resources, renting out botnets and forming alliances."

He pointed to the popular model known as "software as a service," or SaaS, where a provider licences an application to a customer for use as a service on demand via the web saving costs for the user.

He said cyber-criminals were increasingly acting like virtual MBA (Master of Business Administration) students.

Mr Peterson also cited an increase in investment by the criminal community and its ability to offer off-the-shelf spyware and services like those dedicated to checking how well a piece of malware is performing.

Trends

Big news stories were a goldmine for cyber crooks said Cisco who mapped a massive rise in spam as news like the death of Michael Jackson broke.

"One of the most important themes for a business is customer acquisition," said Mr Peterson who is Cisco’s senior security researcher.

Papers

"We use Michael Jackson as a quintessential example. When the media was in the air and scrambling to cover his death, the bad guys were coming up with creative news copy that tried to persuade users to click on a photo, video or memorabilia to trick the user onto an infected site."

Cisco also said in the coming months it expected the level of spam to climb to record levels. In May just over 249 billion spam messages were sent – the third highest volume day ever.

The company also predicted a surge in attacks on legitimate websites. Recent Cisco data showed that exploited websites were responsible for nearly 90% of web-based threats.

Mobile phones are another growing concern with over four billion handsets in the world.

"SMS offers a big advantage to the criminal," explained Mr Peterson.

"We know not to click on e-mail or links but when you get a text from your bank asking you to call to verify your account details, you trust it."

These so called "smishing attacks" are expected to soar over the coming years.

"Popular haunts"

Cisco also noted that "the cyber criminals go where the users are, which means social networking sites are becoming more popular haunts for attackers."

The Kaspersky Lab Research Centre found that cyber crooks who use sites like Facebook, MySpace and Twitter to spread viruses and worms were ten times more successful in their attacks than if they had used e-mail.

Generic spam message

Cisco noted that "the open, simple communication structure of web 2.0-based applications is also its key weakness."

"It’s unfortunate but in places like Facebook, MySpace and Twitter where generally good people hang out and share information quickly and freely, there will be those who are not as honest who take advantage," said Ken Silva, the chief technology officer of VeriSign, a company that secures the internet.

One security vendor, Unisys told BBC News that web criminals are attracted to these sites because of the level of trust that can be exploited among users.

"This is all about the bad guys using your relationships with others to get you infected or pass along infections," said Nathan Shanks, senior security architect of the company’s global outsourcing unit.

"In this world it means that active members with hundreds of friends on Facebook or followers on Twitter will become more of a target."

E-mail signatures

Cisco’s Mr Peterson painted a depressing picture for the future.

"There is a fair bit of doom and a fair bit of gloom," he said.

malware search

"But the last 12 months have been the most heartening with some successful law enforcement cases putting the bad guys out of business."

Mr Peterson did however admit that it is a bit like the famed "whack-a-mole" game because every time they take someone out, there is another crook ready to fill in the gap.

"What is happening is unprecedented in the history of the world where a criminal is able to sit in Italy and commit highway robbery in France. And that is what we have here."

He said that while collaboration between law enforcement, industry and governments works well in the western world, it does not in places like China, Russia and the Ukraine.

"We just don’t speak the same language and we don’t have the contacts to quickly call up our counterparts and ask for help. We need a long term strategic approach and we need to continue to whack the criminals and their partners where we can reach them.

"The bad guys are innovating like crazy and we need to give our customers and enterprises security that is good enough," said Mr Peterson.

VeriSign’s Mr Silva said there is one simple solution but, so far, few seem willing to grab at it.

"If we could attach a digital signature to our e-mails and communications then you would be able to trust that e-mail. Today we don’t really know if the person who says they sent an e-mail is really that person.

"I would never do business in the real world with someone if I couldn’t validate who they are so why do we do it online

"I don’t know how much money has to be stolen or how many people have to be hurt emotionally and physically before someone figures out there is a real problem here," said Mr Silva. </p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Microsoft Office takes to the web

By Maggie Shiels
Technology reporter, BBC News, Silicon Valley

Microsoft office

Microsoft has launched its latest salvo at Google with a free web-based version of its dominant Office software.

Office 2010 will include lightweight versions of Word, Excel, PowerPoint and OneNote when it ships next year.

The new web offering will compete with Google’s free online Docs suite launched three years ago.

Last week Google took aim at Windows with news of a free operating system while in June Microsoft introduced a new search engine called Bing.

"We believe the web has a lot to offer in terms of connectivity," Microsoft’s group product manager for Office told the BBC.

"We have over a half a billion customers world-wide and what we hear from them is that they really want the power of the web without compromise. They want collaboration without compromise.

"And what they tell us today is that going to the web often means they sacrifice fidelity, functionality and the quality of the content they care about. We knew that if and when we were ever going to bring applications into a web environment, we needed to do the hard work first because we hold such a high bar," said Mr Bryant.

Microsoft said that 400 million customers who are Windows Live consumers will have access to the Office web applications at no cost.

At a conference for business partners in New Orleans, Microsoft announced an early release of web-apps to thousands of testers later this year.

At the end of the year the company expects to release a proper public beta for the software and ship a final version off to PC makers in the first half of 2010.

‘Conversion’

Analysts have mostly given the thumbs up to Microsoft for moving some of its applications to the web, even if it might cost them dearly.

Microsoft excel on the web

The Wall Street Journal has estimated that offering free online software could "put at risk as much at $4bn (£2.46bn) in revenue".

One analyst told the paper that despite such losses, it could be a canny move.

"Making sure people are still using Microsoft products is more important" in the short term than risking revenue, explained Piper Jaffray analyst Gene Munster.

"They need to keep people using Office," he said.

"Microsoft is finally making the conversion through the web-based world. First, we saw that through Bing. Now we are seeing that through Office, " said Jeffries & Co analyst Katherine Egbert.

"The software giant has woken up, " wrote Emil Protalinksi of online blog Arcs Technica.

"It is promising to know that such a traditional software company is responding to the ‘threat of the cloud’ to its core business by embracing it."

Investors appeared to like Microsoft’s move and boosted shares by almost 3.8% higher to close at $23.23 (£14.33).

Rivalry

Microsoft’s announcement is being seen as the latest move in a tit-for-tat rivalry between two tech giants as it and Google increasingly make efforts to encroach on one another’s turf.

When Google announced its Chrome operating system last week, the blogosphere watched and waited for Microsoft to react.

Chrome logo

Mr Bryant stuck to the company line when he spoke to BBC News.

"I haven’t seen the product. I think it’s not a trivial engineering investment to go and build an operating system," he said. "Of course it is interesting and there is a lot of talk but until we see the product, it’s hard to say what kind of impact it will have.

"We can’t afford to get wrapped up in hype or buzz or noise because really our customers depend on us every single day."

Microsoft’s business software division, which includes Office, made $9.3 bn (£5.74bn) in profit from $14.3 bn(£8.82bn) in sales during the first three-quarters of its 2009 fiscal year. </p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.